FxWirePro: EUR/AUD range bound in short term, primary trend still bullish

• EUR/AUD initially gained on Monday but lost ground after German Chancellor Olaf Scholz failed to secure a parliamentary confidence vote, deepening political uncertainty.

•   The German parliament agreed to withdraw its confidence in Chancellor Olaf Scholz and his government, paving the way for an early election on February 23 following the collapse of his coalition..

•  Chancellor Scholz's coalition fell apart last month after the Free Democrats (FDP) quit over debt issues, leaving the SPD and Greens without a majority amid Germany's economic crisis.

• Rally towards is  1.6600 possible if  EUR/AUD bulls overcome resistance at 23.6%fib

• Immediate resistance is located at 1.6572(23.6%fib), any close above will push the pair towards 1.6652(Higher BB).

• Strong support is seen at 1.6466(38.2%fib) and break below could take the pair towards 1.6385 (50%fib).

Recommendation: Good to buy around 1.6480 with stop loss of 1.6400 and target price of 1.6560